Consumers come first, says new watchdog Samuel

May 29 2003By Josh Gordon, Malcolm Maiden

Melbourne business, sporting and cultural identity Graeme Samuel has promised to put consumers ahead of big business when he takes charge of the Australian Competition and Consumer Commission on July 1.

Defying some states, Treasurer Peter Costello yesterday confirmed he would use a special power to elevate Mr Samuel to the powerful position on an acting basis for 12 months, after narrowly failing to get the required majority of states to appoint him permanently.

Mr Costello needed the backing of at least five states and territories to appoint Mr Samuel as the permanent chairman, but NSW, Queensland, South Australia and the ACT opposed the nomination.

Speaking on the issue for the first time, Mr Samuel yesterday promised he would act as a champion for consumers, but flagged a slightly more cautious approach than incumbent Allan Fels, who will leave the ACCC in just over four weeks.

"The substance of what the commission has been doing and the substance of the role of the chairman won't change," Mr Samuel said. "But there will clearly be a change in style and that's by definition of different personalities."");document.write("

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Mr Samuel's appointment will have big ramifications for the Victorian sporting and business communities, as he will quit virtually all his other directorships and public positions, and will step down as Australian Football League commissioner at the end of June. He has been an AFL commissioner since 1984, and one of the most influential.

Mr Costello said Mr Samuel was the only candidate with significant support, saying he would write to the states and territories within a year urging them to vote for Mr Samuel's permanent appointment.

The appointment was welcomed by Victorian Treasurer John Brumby, who said Mr Samuel was an excellent choice.

"Mr Costello may have exploited a legal loophole by imposing Mr Samuel as an acting chairman, but a lawyer's cute trick is no substitute for leadership," Mr Egan said.

The Queensland and ACT governments also said they would continue to oppose Mr Samuel, and federal shadow treasurer Bob McMullan accused Mr Costello of leaving the leadership in limbo.

Bob Baxt, a former chairman of the Trade Practices Commission, the ACCC's predecessor, said he was fearful that the states would create havoc by continuing to oppose Mr Samuel.

"Morale inside the ACCC is at absolute rock-bottom because of this," Mr Baxt said. "They see themselves as caught between warring states, and they just want to get on with the job".

Outgoing ACCC chairman Allan Fels welcomed the appointment and declared himself a Samuel supporter. He said the two men had already had long talks about the transition, and predicted a smooth handover.

But in a speech at the Australian National University, Professor Fels hit out at the Government's failure to reform the law against misuse of market power. He said the ACCC had won only one case against misuse of market power since 1991.